Bitcoin is at its main support channel line, if this holds then it may start a new rally. So far the indicators say BEARISH, unless the price moves above the moving averages, which is something not happening now, the peaks will still be sold. There are many disgruntled bubble investors who bought with credit card and who put a fortune during the euphoria phase, and now they're capitulating. The price has to find a support and consolidate before capital returns to bitcoin.
Bitcoin originally was conceived as digital currency on top of the blockchain architecture, it is not an investable asset, but the market turned it into a speculative asset. Bitcoin and gold have similarities, there is a limited supply, so the value may be maintained along the time, however, there's a main difference, we have a single kind of gold, meanwhile we have hundreds of different kinds of bitcoins in the market, and new bitcoins are pushed in the market through new ICO's, this creates a factor that gold doesn't have, we don't have different kinds of gold, only one, but we have an increasing number of digital currencies in the market, this may create dilution in the long run. So is it an investable asset for the long run?, it is not likely. This is a revolution in the way we perform transactions, and in the long run the digital currency will create a forex like market, with shrinking swings and less volatility.
Jumping all at once in a market you don't know may end bad. Look for the indicators and keep rational.
Bitcoin originally was conceived as digital currency on top of the blockchain architecture, it is not an investable asset, but the market turned it into a speculative asset. Bitcoin and gold have similarities, there is a limited supply, so the value may be maintained along the time, however, there's a main difference, we have a single kind of gold, meanwhile we have hundreds of different kinds of bitcoins in the market, and new bitcoins are pushed in the market through new ICO's, this creates a factor that gold doesn't have, we don't have different kinds of gold, only one, but we have an increasing number of digital currencies in the market, this may create dilution in the long run. So is it an investable asset for the long run?, it is not likely. This is a revolution in the way we perform transactions, and in the long run the digital currency will create a forex like market, with shrinking swings and less volatility.
Jumping all at once in a market you don't know may end bad. Look for the indicators and keep rational.